The practice and habit of understanding  INVESTMENT – MONEY MARKET – FINANCIAL MARKET  can never be overemphasized because whenever we invest our hard-earned money, we want to generate high returns while enduring little or no risk.

Risk and reward go hand-in-hand with investing in financial markets, Higher risk is associated with greater probability of higher return and lower risk with a greater probability of smaller return.

Usually, Older people or people with little or no basic knowledge or understanding of the financial or money market are advised to stick to safe investments like:

Fixed Deposit

FD is an investment product in which money is deposited for a stated period of time and fixed interest is paid at the end of that period.

With a fixed deposit, one of the most unusual characteristics is that funds cannot be withdrawn for a fixed period of time ( recently, banks are now allowing premature withdrawals, but with the option of loosing part of your accrued interest.

Fixed deposit term can vary anywhere from one month to five years.

When you invest in a fixed deposit investment, you are usually presented with different “tenure” or term options e.g. one month, three months, six months, one year etc. each tenure” or term comes with a predetermined interest rate.

Be aware that each bank or financial institutions fixes its own deposit rates, so I would advise you try a few places before committing to any institutions plan.

The awesome thing about FD is that fluctuation in the prevailing interest rate would not affect the rate you were given at your investment tenure start date.

Mutual fund

Mutual fund is a type of financial vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund’s assets and attempt to produce capital gains and/or income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus

Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of the fund.

Treasury Bills 

Treasury bills, or T-bills, are short-term government debt with the security of guaranteed payments through the Central Bank to provide short term funding for the government. 

When you invest in T-bills, you are lending your money to the Government in exchange for interest payments. The tenure are typically 91, 182 and 364 days 

The interest element of a treasury bill is paid to you upfront and credited to your bank account. For example, if you purchase a ₦100,000 TB with an interest rate of 10% and your account is debited with ₦90,000 as such your ₦10,000 interest is paid up front. Upon maturity, you are paid the face value ₦100,000.


Committing yourself to an investment strategy is like buying a new car, you have to figure out what style suits you before checking out the different models.


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